CODING: Words stricken are deletions; words underlined are additions.



                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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  9

10  ______________________________________________________________

11  Representative(s) Fasano offered the following:

12

13         Amendment (with title amendment) 

14         On page 1, line 15,

15

16  insert:

17         Section 1.  Paragraph (b) of subsection (1) of section

18  121.053, Florida Statutes, is amended to read:

19         121.053  Participation in the Elected Officers' Class

20  for retired members.--

21         (1)

22         (b)  Any retired member of the Florida Retirement

23  System, or any existing system as defined in s. 121.021(2),

24  who, on or after July 1, 1990, is serving in, or is elected or

25  appointed to, an elective office covered by the Elected

26  Officers' Class shall be enrolled in the appropriate subclass

27  of the Elected Officers' Class of the Florida Retirement

28  System, and applicable contributions shall be paid into the

29  Florida Retirement System Trust Fund as provided in s.

30  121.052(7). Pursuant thereto:

31         1.  Any such retired member shall be eligible to

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  continue to receive retirement benefits as well as

  2  compensation for the elected officer service for as long as he

  3  or she remains in an elective office covered by the Elected

  4  Officers' Class.

  5         2.  If any such member serves in an elective office

  6  covered by the Elected Officers' Class and becomes vested

  7  under that class, he or she shall be entitled to receive an

  8  additional retirement benefit for such elected officer

  9  service.

10         3.  Such member shall be entitled to purchase

11  additional retirement credit in the Elected Officers' Class

12  for any postretirement service performed in an elected

13  position eligible for the Elected Officers' Class prior to

14  July 1, 1990, or in the Regular Class for any postretirement

15  service performed in any other regularly established position

16  prior to July 1, 1991, by paying the applicable Elected

17  Officers' Class or Regular Class employee and employer

18  contributions for the period being claimed, plus 4 percent

19  interest compounded annually from the first year of service

20  claimed until July 1, 1975, and 6.5 percent interest

21  compounded thereafter, until full payment is made to the

22  Florida Retirement System Trust Fund. The contribution for

23  postretirement Regular Class service between July 1, 1985, and

24  July 1, 1991, for which the reemployed retiree contribution

25  was paid, shall be the difference between such contribution

26  and the total applicable contribution for the period being

27  claimed, plus interest. The employer of such member may pay

28  the applicable employer contribution in lieu of the member. If

29  a member does not wish to claim credit for all of the

30  postretirement service for which he or she is eligible, the

31  service the member claims must be the most recent service.

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1         4.  Creditable service for which credit was received,

  2  or which remained unclaimed, at retirement may not be claimed

  3  or applied toward service credit earned following renewed

  4  membership. However, service earned in accordance with the

  5  renewed membership provisions in s. 121.122 may be used in

  6  conjunction with creditable service earned under this

  7  paragraph, provided applicable vesting requirements and other

  8  existing statutory conditions required by this chapter are

  9  met.

10         5.  An elected officer who is elected or appointed to

11  an elective office and is participating in the Deferred

12  Retirement Option Program is not subject to termination as

13  provided in s. 121.021(39)(b), or reemployment limitations as

14  provided in s. 121.091(9), until the end of his or her current

15  term of office or, if the officer is consecutively elected or

16  reelected to an elective office eligible for coverage under

17  the Florida Retirement System, until he or she no longer holds

18  such an elective office, as follows:

19         a.  At the end of the 60-month DROP period:

20         (I)  The officer's DROP account shall accrue no

21  additional monthly benefits, but shall continue to earn

22  interest as provided in s. 121.091(13).

23         (II)  No retirement contributions shall be required of

24  the employer of the elected officer and no additional

25  retirement credit shall be earned under the Florida Retirement

26  System.

27         b.  Nothing herein shall prevent an elected officer

28  from voluntarily terminating his or her elective office at any

29  time and electing to receive his or her DROP proceeds.

30  However, until termination requirements are fulfilled as

31  provided in s. 121.021(39), any elected officer whose

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  termination limitations are extended by this section shall be

  2  ineligible for renewed membership in the system and shall

  3  receive no pension payments, DROP lump sum payments, or any

  4  other state payment other than the statutorily determined

  5  salary, travel, and per diem for the elective office.

  6         c.  Upon termination, the officer shall receive his or

  7  her accumulated DROP account, plus interest, and shall accrue

  8  and commence receiving monthly retirement benefits, which

  9  shall be paid on a prospective basis only.

10

11  However, an officer electing to participate in the Deferred

12  Retirement Option Program on or before June 30, 2002, shall

13  not be required to terminate and shall remain subject to the

14  provisions of this subparagraph as adopted in section 1 of

15  chapter 2001-235, Laws of Florida Any elected officer who is a

16  participating member of DROP may terminate participation at

17  any time during the 60-month DROP participation period and

18  elect to enroll in the appropriate subclass of the Elected

19  Officers' Class, including participating in the Senior

20  Management Service Class, effective the first day of the

21  following month.

22         Section 2.  Paragraph (b) of subsection (13) of section

23  121.091, Florida Statutes, is amended to read:

24         121.091  Benefits payable under the system.--Benefits

25  may not be paid under this section unless the member has

26  terminated employment as provided in s. 121.021(39)(a) or

27  begun participation in the Deferred Retirement Option Program

28  as provided in subsection (13), and a proper application has

29  been filed in the manner prescribed by the department. The

30  department may cancel an application for retirement benefits

31  when the member or beneficiary fails to timely provide the

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  information and documents required by this chapter and the

  2  department's rules. The department shall adopt rules

  3  establishing procedures for application for retirement

  4  benefits and for the cancellation of such application when the

  5  required information or documents are not received.

  6         (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general,

  7  and subject to the provisions of this section, the Deferred

  8  Retirement Option Program, hereinafter referred to as the

  9  DROP, is a program under which an eligible member of the

10  Florida  Retirement System may elect to participate, deferring

11  receipt of retirement benefits while continuing employment

12  with his or her Florida Retirement System employer. The

13  deferred monthly benefits shall accrue in the System Trust

14  Fund on behalf of the participant, plus interest compounded

15  monthly, for the specified period of the DROP participation,

16  as provided in paragraph (c). Upon termination of employment,

17  the participant shall receive the total DROP benefits and

18  begin to receive the previously determined normal retirement

19  benefits. Participation in the DROP does not guarantee

20  employment for the specified period of DROP.

21         (b)  Participation in the DROP.--

22         1.  An eligible member may elect to participate in the

23  DROP for a period not to exceed a maximum of 60 calendar

24  months immediately following the date on which the member

25  first reaches his or her normal retirement date or the date to

26  which he or she is eligible to defer his or her election to

27  participate as provided in subparagraph (a)2. However, a

28  member who has reached normal retirement date prior to the

29  effective date of the DROP shall be eligible to participate in

30  the DROP for a period of time not to exceed 60 calendar months

31  immediately following the effective date of the DROP, except a

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  member of the Special Risk Class who has reached normal

  2  retirement date prior to the effective date of the DROP and

  3  whose total accrued value exceeds 75 percent of average final

  4  compensation as of his or her effective date of retirement

  5  shall be eligible to participate in the DROP for no more than

  6  36 calendar months immediately following the effective date of

  7  the DROP.

  8         2.  Upon deciding to participate in the DROP, the

  9  member shall submit, on forms required by the division:

10         a.  A written election to participate in the DROP;

11         b.  Selection of the DROP participation and termination

12  dates, which satisfy the limitations stated in paragraph (a)

13  and subparagraph 1. Such termination date shall be in a

14  binding letter of resignation with the employer, establishing

15  a deferred termination date. The member may change the

16  termination date within the limitations of subparagraph 1.,

17  but only with the written approval of his or her employer;

18         c.  A properly completed DROP application for service

19  retirement as provided in this section; and

20         d.  Any other information required by the division.

21         3.  The DROP participant shall be a retiree under the

22  Florida Retirement System for all purposes, except for

23  paragraph (5)(f) and subsection (9) and ss. 112.3173, 112.363,

24  121.053, and 121.122. However, participation in the DROP does

25  not alter the participant's employment status and such

26  employee shall not be deemed retired from employment until his

27  or her deferred resignation is effective and termination

28  occurs as provided in s. 121.021(39).

29         4.  Elected officers shall be eligible to participate

30  in the DROP subject to the following:

31         a.  An elected officer who reaches normal retirement

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  date during a term of office may defer the election to

  2  participate in the DROP until the next succeeding term in that

  3  office. Such elected officer who exercises this option may

  4  participate in the DROP for up to 60 calendar months or a

  5  period of no longer than such succeeding term of office,

  6  whichever is less.

  7         b.  An elected or a nonelected participant may run for

  8  a term of office while participating in DROP and, if elected,

  9  extend the DROP termination date accordingly, except, however,

10  if such additional term of office exceeds the 60-month

11  limitation established in subparagraph 1., and the officer

12  does not resign from office within such 60-month limitation,

13  the retirement and the participant's DROP shall be null and

14  void as provided in sub-subparagraph (c)5.d.

15         c.  An elected officer who is dually employed and

16  elects to participate in DROP shall be required to satisfy the

17  definition of termination within the 60-month limitation

18  period as provided in subparagraph 1. for the nonelected

19  position and may continue employment as an elected officer as

20  provided in s. 121.053. The elected officer will be enrolled

21  as a renewed member in the Elected Officers' Class or the

22  Regular Class, as provided in ss. 121.053 and 121.22, on the

23  first day of the month after termination of employment in the

24  nonelected position and termination of DROP. Distribution of

25  the DROP benefits shall be made as provided in paragraph (c).

26         d.  An elected officer who is elected or appointed to

27  an elective office is not subject to termination limitations

28  as provided in chapter 121.

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                                                   HOUSE AMENDMENT

    565-220AX-06                             Bill No. CS/CS/HB 259

    Amendment No. ___ (for drafter's use only)





  1  ================ T I T L E   A M E N D M E N T ===============

  2  And the title is amended as follows:

  3         On page 1, line 3, after "system;"

  4

  5  insert:

  6         amending s. 121.053, F.S., relating to

  7         termination requirements and benefits of

  8         elected officers participating in the Deferred

  9         Retirement Option Program; amending s. 121.091,

10         F.S., regarding Deferred Retirement Option

11         Program termination requirements for elected

12         officers;

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